Question
Anna, a successful property developer, needed finance for a new property development on the Gold Coast. She approached her bank and was told by the
Anna, a successful property developer, needed finance for a new property development on the Gold Coast. She approached her bank and was told by the branch manager of the bank that a loan could be arranged in a foreign currency at a low rate of interest if she was interested. At a later meeting, another bank officer spoke about the advantages of such a loan in terms of it being good business for Anna to borrow offshore: it was low in risk, and it wasn't worth hedging such a loan against the Australian dollar, which was strong at that time. As a result of these conversations, Anna borrowed the equivalent of A$10 million in US dollars. At the time of the loan, the exchange rate for the Australian dollar against the US dollar was A$1.12. Three years later, the value of the Australian dollar had fallen to A$0.70 to the US dollar, significantly increasing Anna's debt to the bank. Has Anna any recourse against the bank under the ACL?
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